1

ENTREPRENEURSHIP SKILLS

GEGIS 5.2

NOVEMBER 24TH, 2023

GROUP 5 MEMBERS:

1. JOSEPH KATHUKYA – ENC221-0069/2018

2. KEVIN KIPROTICH – ENC221-0089/2018

3. KEVIN KIPRONO – ENC221-0090/2018

4. ERIC TUITOEK – ENC221-0092/2018

5. OCHIENG’ TEVIN – ENC221-0374/2018

 2

ENTREPRENEURIAL TRAITS
1. Creativity & Innovation

Creativity involves thinking of novel ideas and concepts. Entrepreneurs need to be able to

come up with new solutions to problems, envision innovative products/services, and brainstorm

fresh approaches (Anjum et al., 2020). They use brainstorming, mind mapping, and lateral

thinking to generate ideas. Innovation means implementing those creative ideas into real-world

solutions that create value (Wang et al., 2022). Entrepreneurs have great ideas, but they also

know how to prioritize and select the best ones, refine them into viable offerings, develop

prototypes/MVPs, run experiments, secure financing, launch to customers, and continually

improve.

2. Mental Ability

Strong analytical and critical thinking skills allow entrepreneurs to research markets,

deeply understand customer pain points, identify issues in current solutions, pinpoint

needs/demands, assess the feasibility of ideas, and weigh the pros and cons of potential

directions. Quantitative skills are essential for forecasting, modeling business metrics, and

statistical analysis. Entrepreneurs also utilize design thinking and systems thinking to solve

problems' root causes, map out all aspects of complex issues holistically, and prototype iterative

solutions(Sarooghi et al., 2019). They are very reflective and have solid observational skills to

improve constantly. Their minds are strategic, synthesizing various pieces into a compelling

vision.

3. Leadership
 3

Entrepreneurs inspire action towards a shared goal. They pitch their vision in engaging

ways to secure investment and excite early team members. They motivate with clarity,

transparency, infectious optimism, and drive. They make tough decisions with conviction after

soliciting input. They share knowledge and experiences to coach team members, helping them

develop skills. They build culture and foster collaborations so people feel purposeful and

accomplish more ( Felix et al., 2019). They structure coordination through regular

communication, operational processes, and schedules/milestones.

4. Team Building

The most successful startups always have strong teams that complement each other’s

strengths and weaknesses. Entrepreneurs know they cannot excel at everything, so they focus on

their specialty while assembling experts in other areas like tech, marketing, ops, etc. They inspire

teams by conveying passion and giving challenges (Iglesias-Sánchez et al., 2019). They get

alignment on vision and values from the start. They promote open communication and

productive conflict resolution. They cultivate diversity and inclusion to get a variety of

perspectives. They emphasize a growth mindset.

5. Problem Solving

Entrepreneurs methodically break down complex issues to address root causes (Brem et

al., 2019). They gather pertinent data and context from various sources. They leverage input

from diverse experts during brainstorming sessions to get creative solutions. Next, they use

frameworks to prioritize ideas, assess feasibility, and evaluate tradeoffs. They decide on a

direction backed by solid rationale. During execution, they iterate based on customer feedback,

reviewing outcomes at each stage to adjust course as needed until the optimal solution is reached.
 4

6. Risk Taking

Entrepreneurs take calculated risks instead of reckless decisions. By thoroughly

researching the competitive landscape, market demand, operational costs, and worst-case

scenarios, they make educated guesses on the viability of ideas (Hameed & Irfan, 2019). The

most successful entrepreneurs diversify their risk by testing ideas small before scaling, building

network connections, securing financing channels in advance, expanding gradually, and having

contingency plans ready in case substantial pivots are ever required.

7. Hard Working

Entrepreneurship requires immense effort and perseverance through challenges that sap

motivation. Passion about their vision keeps entrepreneurs working long hours (Bazkiaei et al.,

2020). They set ambitious goals and metrics that necessitate intense work. But they also work

bright by optimizing systems and processes for efficiency. They automate tasks when possible

and outsource non-core activities. Importantly, they prioritize self-care to sustain energy. They

surround themselves with support systems and take reflective breaks.

8. Technical Expertise

Domain expertise lends central credibility when pitching ideas and securing financing. It

also enables entrepreneurs to understand customer pain points within the industry intimately

(Hwang et al., 2020). They can leverage past experiences and connections in the field.

Additionally, technical know-how is imperative during product development stages. Whether

building hardware or software, hands-on skills and an intimate understanding of engineering

processes help oversee creation smoothly and effectively while avoiding pitfalls.

9. Highly Optimistic
 5

Entrepreneurship is filled with uncertainty and stress that prompts pessimism if dwelled

upon. However, highly optimistic entrepreneurs overcome doubts and see possibilities. They

make the best out of bad situations, focusing on things within control. This inspires teams and

becomes self-fulfilling. Optimism stems from a firm conviction about the value of their solution.

Past entrepreneurial successes and support systems also reinforce confidence to take positive

perspectives when encountering inevitable challenges (Bazkiaei et al., 2020).

10. Self Confidence

Decisiveness amidst uncertainty and constantly dealing with skepticism requires trusting

one's judgment. Entrepreneurs forge their path based on internal visions others may need to see

clearly (Iglesias-Sánchez et al., 2019). Confidence comes from thoroughly researching and

validating assumptions. Additionally, entrepreneurs develop self-awareness and surround

themselves with advisors to balance natural overconfidence that may lead to poor decisions.

They overlook transient failures, learning valuable lessons from mistakes while retaining the

belief needed to persevere.

11. Dynamism

Entrepreneurs are highly energetic self-starters who recognize opportunities and take the

initiative to make their ideas real. They are restless spirits, unsatisfied with the status quo. Their

drive comes from intense internal motivation rather than external influences. Successful

entrepreneurs set stretch goals that push limits while still achievable through proper planning.

Their visions and roadmaps balance ambition with pragmatic restraint. They break long-term

objectives into measurable milestones and actionable task causes (Brem et al., 2019).

Entrepreneurs then leverage tools to enhance personal productivity, managing schedules and
 6

prioritizing ruthlessly. They maintain focus on core goals without unnecessary distractions. They

are agile, able to shift directions quickly based on new data, and never tied to just one approach

if better options emerge.

12. Being Independent

Entrepreneurs exhibit fiercely independent thinking rather than conforming to others'

notions of what is possible. They make decisions based on their research, analysis, and intuition

rather than seeking validation. This enables them to envision novel solutions and pursue

overlooked opportunities that go against mainstream conventions. Financial independence

provides freedom to take risks and focus full efforts on ventures rather than contend with outside

responsibilities. Bootstrapping ventures and living frugally early on preserves autonomy over

decision-making processes, even in the face of external shareholders later on. Entrepreneurs set

their directions guided by internal vision rather than passively waiting for instructions (Hwang et

al., 2020). They take the initiative and ownership, volunteering for unassigned responsibilities

outside their immediate purview when they notice gaps. They are ambitious self-starters who

don't settle. The entrepreneurial journey often feels lonesome. Confidence with autonomy is

crucial to navigating adversity independently when support systems sometimes fall short.

Confidence and resilience stem from self-sufficient skills to solve problems, research answers

independently, and manage setbacks and successes judiciously.

 7

References

Anjum, T., Farrukh, M., Heidler, P., & Díaz Tautiva, J. A. (2020). Entrepreneurial intention:

Creativity, entrepreneurship, and university support. Journal of Open Innovation:

Technology, Market, and Complexity, 7(1), 11.

Bazkiaei, H. A., Heng, L. H., Khan, N. U., Saufi, R. B. A., & Kasim, R. S. R. (2020). Do

entrepreneurial education and big-five personality traits predict entrepreneurial intention

among universities students?. Cogent business & management, 7(1), 1801217.

Brem, A., Bilgram, V., & Marchuk, A. (2019). How crowdfunding platforms change the nature of

user innovation–from problem solving to entrepreneurship. Technological Forecasting

and Social Change, 144, 348-360.

Felix, C., Aparicio, S., & Urbano, D. (2019). Leadership as a driver of entrepreneurship: an

international exploratory study. Journal of Small Business and Enterprise

Development, 26(3), 397-420.

Hameed, I., & Irfan, Z. (2019). Entrepreneurship education: a review of challenges,

characteristics and opportunities. Entrepreneurship Education, 2, 135-148.

Hwang, W. S., Choi, H., & Shin, J. (2020). A mediating role of innovation capability between

entrepreneurial competencies and competitive advantage. Technology Analysis &

Strategic Management, 32(1), 1-14.

Iglesias-Sánchez, P. P., Jambrino-Maldonado, C., & de las Heras-Pedrosa, C. (2019). Training

entrepreneurial competences with open innovation paradigm in higher

education. Sustainability, 11(17), 4689.

 8

Sarooghi, H., Sunny, S., Hornsby, J., & Fernhaber, S. (2019). Design thinking and

entrepreneurship education: Where are we, and what are the possibilities?. Journal of

Small Business Management, 57, 78-93.

Wang, C., Mundorf, N., & Salzarulo-McGuigan, A. (2022). Entrepreneurship education enhances

entrepreneurial creativity: The mediating role of entrepreneurial inspiration. The

International Journal of Management Education, 20(2), 100570.

 9

Business-to-Business (B2B)

A B2B Business Model is a business that sells, rents, or leases its product to another business

rather than individual consumers (business-to-consumer or B2C).(Ryan Neill Stott et,.al

2016)

Reasons entrepreneurs may choose to start B2B companies

1. Larger order values: B2B customers often make large, repeat purchases rather than one-

time small transactions. For example, a business buying software for its operations may

spend over $100,000 versus a consumer spending $100 on an app.

2. Ability to build strategic partnerships: In B2B, companies aim to become trusted partners

and embedded in the customer's business processes.

3. Fewer customers needed to reach profitability: B2B startups require fewer customers due

to the larger deal sizes.

4. Opportunity to specialize in complex business needs: Startups can deeply specialize

rather than require mass-market appeal. There is space to be an expert in a narrow, high-

value-add area and build innovative solutions.

Types of Business-to-Business Models

1. Customer-Centric Model: A B2B model where one business sells its product and provides

service/support to other businesses that use it. This creates loyalty by providing ongoing

value.

• Sells product and provides ongoing service/support

• Examples: Dropbox, Microsoft Office, Adobe.

 10

2. Buyer Centric Model: A B2B model where one business sells its product to another but

does not offer service/support. This keeps costs low but may lack loyalty.

• Sells product only, no additional services

• Examples: Home Depot, Craigslist, OfficeMax.

3. Intermediary Centric Model: A B2B model where one business charges others for its

product and an additional fee to act as a middleman. This can create value over time by

offering unique services.

• Facilitates transactions between businesses and charges both sides

• Examples: Zipcar, Microsoft Office 365.

Advantages of choosing the correct B2B business model

1. Longer-Term Relationships: B2B models allow for forming long-lasting partnerships

with business customers, providing stability and predictability while reducing marketing costs.

2. Scalability/Availability: B2B models provide the ability to scale up services and ensure

availability of products or services to meet business customer needs.

3. Differentiated Offerings: Through B2B relationships, companies can provide specialized

or customized products/services to key business clients.

4. Stronger Brand Positioning: Direct B2B relationships enable more robust branding and

trust-building with business customers, further reducing marketing costs.

 11

5. Lower Marketing Costs: By selling directly to other businesses, companies can avoid

expenses related to consumer advertising and competing for keywords. The targeted

nature of B2B allows more focused marketing.

Challenges of Choosing the Wrong B2B Business Model

1. Longer Sales Cycle: B2B sales cycles can be much longer than B2C, as you need to sell

to businesses buying on behalf of other companies.

2. More Complex Decision Making: Multiple decision makers are often involved in B2B

deals, whereas B2C usually involves a single consumer decision maker. This makes B2B

more complex.

3. Variable Revenues/Profits: Revenue and profits can vary greatly in B2B depending on

customer price sensitivity, products sold, etc. Less predictable than B2C.

4. Requires Greater Investment: Higher trust and reliability are needed for B2B

partnerships, requiring greater upfront investment and backups before contracts are

signed. Failing on deliverables impacts partners too.

Key differences in B2B startups compared to B2C

1. Longer sales cycles: B2B buyers undertake lengthy research and due diligence before

committing. Procurement processes are also more complex.

2. Need for field sales teams: B2B selling requires consistency, relationships, and targeted

customer interactions - best achieved via field sales teams.

• Field sales reps can have in-depth discussions about customer needs and demos tailored

to specific use cases.

 12

3. Negotiating with procurement departments: B2B deals require negotiating with

professional procurement teams who manage stringent purchasing processes.

4. Fewer customers but higher revenue per customer: B2B focuses on high-value deals with

10s-100s of customers versus B2C models that monetize millions of users.

5. Focus on return on investment for customers: B2B buyers make purchase decisions based

on measurable ROI - efficiency, cost savings, productivity gains.

6. Distribution channels and marketing tactics differ in B2B: With more emphasis on direct

sales, conferences, referrals, content marketing to nurture leads. Branding and customer

experience remain important.

 13

References

Business models in the business-to-business and business-to-consumer worlds – what can each

world learn from the other? - Ryan Neill Stott, Merlin Stone & Jane Fae

Essentials of Entrepreneurship and Small Business Management - by Norman M. Scarborough,

Jeffrey R. Cornwall